Western Union has made a takeover offer for its fellow legacy remittance firm, MoneyGram according to business and markets news site Bloomberg.
The deal is yet to be finalized and may not come to fruition, but if it does it would join two of the largest remittance firms in the world.
Back in 2019, Western Union brought in US$4.4 billion in revenue from its consumer-to-consumer segment, while MoneyGram recorded over US$1.1 billion in money transfer revenue last year.
Obtaining MoneyGram may position Western Union to better compete with upstart digital remittance firms by bolstering its digital and physical remittance capabilities.
However, reportedly, MoneyGram has been struggling during the current pandemic, as its physical locations have been forced to close around the world as governments impose stay-at-home orders.
More details to come relating to the offer by WU.
Shannon Dale Reid